purchase order processing

Freight Allocation Entry

Last Revised: 08/17/18

Freight Allocation can be used to modify the cost of on-hand inventory when an invoice is received from a shipping vendor, but some or all of the related inventory has been sold to customers or transferred to another branch. Cost can be distributed by either weight or by volume. Changes in item costs can be seen in Item Inquiry and on sales orders containing affected inventory items.

 

Upon entering Freight Allocation Entry, users are prompted to enter the vendor from which the shipping invoice was received, the invoice number, and the amount of the invoice. Next the user has the option of distributing costs by either the value of the inventory or by its weight. The rest of the values (date, time, etc) will be filled in automatically.

 

Next the user will be prompted to choose what they want to apply the freight allocation to. They are initially asked for receipt number, but can easily choose to look up by vendor, PO number, or warehouse as can be seen in the following image.

 

 

 

In the following example, $10 is allocated across a receipt containing 10 items received at $8.08 per item. This should increase the cost of the inventory items on the receipt by $1.00 each. Notice in the second image that even items in transit to another warehouse receive the same increase in cost.